Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-08-04
DOWN SHE GOES:
A GRAND CRASH II THE WHEAT
MARKET.
The Bulls Driven to the WaIl-Fail-
ure Of Dresbach & Rosenfeld, g.
Leading Operators.


ESPECIAL DISPATCHES TO THE RECoRD-USIoS.1
Copyright, 1857, by tie California Associated Press
SAN FRANCISCO, August 3d.-At the usual hour
for opening Call Board business this morning
| President Frank Dalton called the members "a
order and stated that sessions had been tempo.
rarily suspended. and requested the Secretary to
read the following resolution:
! By order of the Board of Directors all sessions
| Of the San Francisco Produce Exchange Cal!
| Board Association are hereby adjourned until
further notice from the Board. All transfers OF
| contracts are discontinued.
Contracts deliverable to-day are due and de.
l1Yerable the day Of the first session of the Cal
BOARD. Contracts due tomorrow are due and
l aellveraple the second day succeeding the first
session of the Call Board.
Deliveries of the wheat on notice follow the
| same course. By order OF the Board of Oi-
| rectors.
| EXPLANATION OF THE SITUATION
c. B. Stone, member of the Produce Ex.
Change explained the situation thus: This
| morning Mr.. Dresbach sent for myself and
Barry Baldwin, and We waited on him at his
| Office. He stated that as the banks had refused
yesterday to loan any more money on wheat or
| purchase exchanges on cargoes already loaded
that ii was impossible TO obtain the necessary
coin to pay for ms aenyeues now due. lie
| therefore authorized us TO make the following
| proposition to the Board OF Directors of the
produce Exchange and the sellers of wheat viz
| lie Will margin down ali his contracts TO 81 20
| per Genital when the wheat is rendered the
sellers to carry the wheat at this price and re-
ceiVe per cent interest, and the amount of
| insurance and storage charges. Upon this
basis Dresbach agrees to take one-fourth the
| quantity OF wheat purchased by him for Sep
tember delivery, eud.one- fourth in October, No
kennper .l9e1 ana December each. As security that
ne VIII margin his wheat down 10 81 20 per cen
tal, he VIII deposit with the Directors of the
| Produce Exchange in negotiable warehouse
receipts, 1000 tons OF No. l white wheat
| which he authorizes the Directors TO sell and
| pay the proceeds to the sellers of wheat should
| he default on his margin.
Mr. Baldwin and myself conveyed this propo-
sltion TO the Directors of the Exchange who
| Immediately ordered an adjournment until
| further notice. This was done to prevent n
panic and to permit dealers TO recover their
| compOsure. l do not consider this temporary
| cloud collapse, but think everything Will
| come out right IN time
| FEELING OF RELIEF.
| On the street this afternoon there was a gen
eral feeling of relet that the ringsters had come
70 the end OF their course. Should Dresbach's s
| proposition be accepted-as in all likelihood 1t
will-the virtual result viii be that spectators
| and brokers shorts included) will have agreed
| to Keep their hands of the market for the time
I
| The money squeezed out of the shorts on margin
| Will be refunded and they will lose NOTHING
on the other hand, the rings wheat has sub
stantially lost over 81 Is, and they will lose the
difference between that and 81 55 Dresbsch
| evidently had the shorts SO badly scared that
| they are wiling to get out without making any
thing, though they certainly had him in a nosj-
| lion TO close him out in short order.
AN AFTERNOON CONFERENCE.
meeting called by Dresbach and Rosenfeld
was held at p NJ. at the Chamber of Commerce.
Inc strictest secrecy was maintained, and none
but creditors and members of the Exchange
were permitted to enter A long and stormy de-
bate TOOK place on the offer of settlement on the
Dresbach contract Goodyear, q Yolo county
farmer was the leading spirit in the discussion,
which lasted for u considerable time.
THE SETTLEMENT WAS FINALLY ACCEPTED.
And committee was appointed to draw up an
agreement TO that effect, subject to the terms
previously mentioned Amongst the heaviest
creditors announced at the meeting was ].
chased at 81 10 TO 81 10 per GENITAL E. H Kow-
alsky was another of the heaviest losers, his
liabilities being reckoned at very large
amount. Eppinger is also mentioned as ON the
wrong side of the market to the tune of thor
sands, having been caught with large amounts
OF wheat purchased on long account n Cohen
u Co., OF which firm L. kaufman is an active
member, bave suffered to large extent, and
their claims were presented at the meeting A
nul1per @ p 9I sfnaler Claimants were represented,
but chiefly of the smallest class of traders
'AhONSSE The SUCCESSFUL DEALERS
Appeared in the first rank Blum. Baldwin K
Girvin, who have realized largely on the deal
George McNear, though uncommunicatiye, is
generally admitted to have come out at the
right end starr * Co., who were on the verge
| OF failure, had an advance continued have
safely weathered the Storm and can now smile
calmly on the situation. The firm of. l.. W Me
Glauiiln has been source of wonder through
out the deal, having at all times been able to
supply the market with grain, even during the
closest tie-up.
| Wm. Baehr, Jr.. has1also been ahead so far,
ana ms profits are stated at large figures. H.
| Dutard is another of the shorts who has won by
endurance and length of purse He may stand
to lose something in his settlements with some
| of the farmers, but the difference will be more
| than made up on his shorts.
\ yoLo EASCHER GETS CAUGHT.
Among the heaviest losers from the country
districts has been Goodyear. of Yolo at present
| stopping at the Occidental Hotel, i'll this city
| His contracts run away up in the thousands of
tons, ana his loss is rariously estimated at from
| $50 coo upwards.
w. Greer Harrison Is so far ranked among
close of the Call Board doors this morning
indicates, however, that events were not as sat.
| isfactory they might be.
|. Goldfish, Cohen x Co. viii be hurt Blum.
| of the Produce Exchange, is on top.
On the suggestion of some of the brokers' Il
| committee was appointed to meet with C. b
| Stone and Garry K Baldwin to make the final
| arrangements necessary to carry out the action
| OF the conference. The persons named were
George W. McNear I. X. Wilbur, of Paulscll Il
Wilbur, and Alfred Bannister of Starr Il Co
Ihey were empowered to take any action which
| they thought necessary to restore equilibrium
and to draw up the papers necessary to protect
Dresbach aud Rosenieid and the shorts.
| A long discussion was held over the adyisa-
bllity of opening the Call Board bat it was de-
cided that it expedient to defer the sessions
until the normal feeling prevails and all danger
OF any KIND OF crash is over. The meeting
adjourned about halfpast o'clock and the
shorts. in announcing that final settlement
had hbeen effected, spread the news far and
vide. Many OF the shorts are particularly ju-
clant on coming out even, and few are ahead
WHAT LEADING OPERATORS SAY.
SAN FRANCISCO, August Sd.-rspecfal. Mr.
Baldwin, of Blum, Baldwin IL Girvin. expressed
himself clearly and fully OH the situation: The
only dellnquents, so far as known-and Ger
tainly the only important members of the ring
are Nm. Treshb3ck and John Rosenfed who
are individually responsible for $4,000 tons of
wheat, held under various options, for delivery
3 10 per Genital. Finding 1t impossible
through the stringency of the local
money market. to arrange the difficulty
of selling eXcha ge and the difficulty
experienced in shipping wheat, to take up these
contracts by paying for the wheat when deliy-
cred, they decided ID ask for time which we
gave them this morning by the adoption of q
resolution sllspending operations in the Cali
Board untn q settlement was arrived at Should
the proposition of Dresbsch and ROsenfeld be ac-
cepted by the shorts Mr Baldwin was of the
/
trouble, aud he did not anticipate any serious
failures amongst operators. Nothing of course
wonld be definitely known as 10 the financial
standing OF the various firms for some days. as
the present trouble would, of course unsettle
business
NOT As BAD A 1T MIGHT HAVE BEEN
If the crisis had not eliminated as 1t did this
morning, worse trouble might have been looked
for As it is, the future has been literally dis
counted. with the result thal the blow has been
considerably deadeDed.
Mr.. Hulme. of Hulme & Hart, was confident
that settlement would he effected and business
resumed Immediately. After-results might be
anticipated in the form of few failures but
none of the more important firms would likely
go under IL was impossible to predict any
thing ahead, and, of course, unfit the firms
themselves made disclosures, nothing could be
learned fIom outside sources.
The Junior members of the firm of Dalton
Bros explained that, so far as their opinion of
the matter was concerned. the longs had ell the
wheat they required at present prices Mr.
DreSpaeh would probably be settled with at an
early date, and business resume its normal
course. The dffhcUltr he ponsfda-aJ beI